- Binance is expanding into the Indian cryptocurrency market despite heavy tax rates imposed on cryptocurrency by the government.
- Indian crypto investors are switching to foreign exchanges to avoid the heavy 1% TDS on crypto transactions.
- Binance downloads in India have increased to 429,000 in August 2022.
Popular cryptocurrency exchange Binance is expanding into the Indian cryptocurrency market as Indian crypto investors switch to foreign exchanges to avoid the heavy 1% TDS on crypto transactions. This TDS is in addition to the steep 30% tax imposed on crypto profits made by traders.
India’s high taxes and stringent asset management rules have caused a loss for Indian crypto exchanges, pulling local traders toward a much more convenient alternative, Binance. According to the data by market intelligence firm, Sensor Tower, Binance application downloads in the country have jumped to 429,000.
Meanwhile, FTX, Sam Bankman-Fried’s crypto exchange, has experienced a 56,000 growth in downloads since January in India.
However, daily transaction volume on Indian cryptocurrency exchanges has dipped below 90% ever since the laws came into effect in July 2022. Crypto exchanges like Binance and FTX are not deducting any taxes when it comes to crypto transactions, becoming a major attraction to Indian investors.
To highlight the gravity of the situation for Indian platforms, India’s favored crypto exchange WazirX has also lost a major share of its customers to Binance, observing a major tank in downloads. Monthly downloads for WazirX, which used to stand at 596,000, have dropped to 92,000 in August.
Moreover, banks are no longer associating with WazirX, causing a further decline in funds and monetary inflow.